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Trevor lends money under a five-year loan agreement. The terms of the loan are that $60,000 is to be repaid at the end of the
Trevor lends money under a five-year loan agreement. The terms of the loan are that $60,000 is to be repaid at the end of the five-year period, but the loan is subject to a discount so that the borrower receives only $55,000. The agreement also states that the borrower pays 2% per annum in interest. What ordinary and/or statutory income, if any, will Trevor be assessable on under this arrangement
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